Education Planning

The average annual cost of a four-year college education ranges from $12,800 for in-state public institutions to $35,000 and above for private colleges.

Are you prepared?

Recent legislation has added the following to the menu of education for incentives:

• The lifetime learning credit
• The hope scholarship credit
• Education IRAs
• Deduction for student loan interest
• Deduction for higher education expenses
• Section 529 Plans

Are you fully utilizing these opportunities?

As the cost of education continues to increase, the need for early planning also becomes more urgent. While, your children may begin college at a time when your earning power is at its maximum, the need to finance college costs may significantly impinge upon your ability to achieve other goals. Long-term funding of college costs and consideration of education tax incentives may help minimize the burden of college funding. In addition, there may be certain assets already in your portfolio that are generally restricted as to use, but may provide a source of education funding.

As parents, we strive to maximize the benefits for our children. By planning early for the possible future costs of college, you may be able to spread the anticipated financial cost over several years, and thereby ease the financial pressure that might otherwise arise from trying to fund college expenses after high school graduation.